13 Mumford Place, Balcatta, WA, 6021 ph: +61 8 6241 1888 fax:...

13 Mumford Place, Balcatta, WA, 6021 ph: +61 8 6241 1888 fax: +61 8 6241 1811
Website: www.tantalumaustralia.com Email: [email protected]
ACN 009 127 020 ABN 58 009 127 020
1
T A N T A L U M
A U S T R A L I A N L
5 May 2004
The Companies Announcement Office
Australian Stock Exchange Limited
Level 4, 20 Bridge Street
Sydney NSW 2000
By ASX Online
MT DEANS TANTALUM PROJECT, NORSEMAN – SIGNIFICANT RC DRILLING RESULTS
Tantalum Australia NL is pleased to announce that it has now received assay results from
Reverse Circulation (RC) drilling completed during March at its Mt Deans project, 7 kilometres
south of Norseman in Western Australia. These significant results confirm the resource potential
of the shallow extensions to the Mt Deans pegmatite system and are likely to increase the size
of the deposit. Importantly all the holes completed intersected significant mineralisation
confirming the consistency of mineralisation obtained by earlier drilling programmes.
The company’s strategy is to identify extensions to the lightly explored Western Lode System
(“WLS” - MDC158 to MDC165) and infill parts of the eastern lode system (“ELS” - MDC166 to
MDC174) where drill sections are spaced at broad intervals of 80 to 160 metres. This recent
programme included 18 holes for a total of 675 metres and along with earlier drilling campaigns
has confirmed that the pegmatite mineralised zone extends for a minimum length along strike of
7 kilometres north south and up to 1.2 kilometres of width.
Follow up Drilling
A 2,000 metre program of RC drilling will commence in June. The program will focus on testing
the northern and southern strike extensions of the WLS and the depth extensions to about 100
metres vertical depth all of which remain open. Further infill drilling will also be completed to test
the up and down dip extensions of the western and eastern lode systems. The mineralisation is
hosted within numerous 2 to 20 metre wide zoned albitic pegmatites that cut a sequence of
dolerite, basalt and minor sediments. The pegmatites generally strike north south in two sets
one flat or shallow east dipping the other set sub vertical or east dipping.
The better intercepts from each of the lode systems include:
72 metres @ 324 g/t Ta2O5
3 metres @ 672 g/t Ta2O5
4 metres @ 370 g/t Ta2O5
8 metres @ 425 g/t Ta2O5
5 metres @ 346 g/t Ta2O5
4 metres @ 349 g/t Ta2O5
13 Mumford Place, Balcatta, WA, 6021 ph: +61 8 6241 1888 fax: +61 8 6241 1811
Website: www.tantalumaustralia.com Email: [email protected]
ACN 009 127 020 ABN 58 009 127 020
2
Significant intercepts are detailed in Table 1. The mineralisation has a dip of between 10 to 30
degrees to the east therefore intercept widths approximate true thickness.
The drill holes were placed to confirm geometry of pegmatite veins known from previous
programs. Significantly, holes MDC166-174 identified a near-surface flatly dipping vein of 4 to 5
metres (true) thickness which can be traced over a strike length of more than 700m. The grade
averages in excess of 350g/t Ta2O5.
In the WLS some 800m to the west of the ELS drilling revealed a previously unsuspected knot of
pegmatite veining. Whereas, previously, drilling indicated regular pegmatite veining 3-5m thick
and of similar geometry and grade to that intersected in the ELS, one hole (MDC162) contained
three veins 15-27m thick (72 metres at 324 g/t), all with significant tantalum grades. Further
drilling in the vicinity of this hole will be required to determine the distribution and attitudes of the
pegmatite units.
Feasibility Study
As part of progressing the Mt Deans project to production stage, Tantalum is undertaking a
feasibility study based on utilising its significant existing plant at Norseman. The study should be
completed no later than late October 2004 and includes:
• Further RC and diamond drilling
• A new resource estimate incorporating past and proposed drilling
• Preliminary pit optimisation.
• Metallurgical test work
• Engineering study and cost estimates of utilising the common infrastructure at the
company’s 300,000 tpa Norseman CIP processing plant (currently on care and
maintenance), which includes crushing, grinding, tailings storage facility, process water
supply and dams.)
The availability of this infrastructure should enable a low cost and rapid start up of operations
following a favourable feasibility.
Results are awaited for drill holes completed late in the current program including shallow holes
drilled to extend the laterite mineralisation discovered by the previous drilling programme.
Yours faithfully
Michael Fotios
Managing Director
This report, so far as it pertains to ore or mineralisation, is based on information compiled by and as reported upon by
Mr Michael Fotios, who is a Member of the Australasian Institute of Mining and Metallurgy, and has more than fire
years experience in the field of activity being reported on.
13 Mumford Place, Balcatta, WA, 6021 ph: +61 8 6241 1888 fax: +61 8 6241 1811
Website: www.tantalumaustralia.com Email: [email protected]
ACN 009 127 020 ABN 58 009 127 020
3
Table 1: Significant Intercepts – Mt Deans
Hole No.
MGA
North
MGA
East
Azimuth
(degrees)
Dip
(degrees)
Total
depth
(m)
From
(m)
To
(m)
Intercept
(m)
Ta2O5
Grade
(g/t)
Western
NDC158
NDC159
NDC160
NDC161
NDC162
NDC164
Lode
6425120
6425120
6425040
6425040
6425040
6424960
6424960
System
383980
384038
384000
384038
384080
384060
384122
270
270
270
270
270
270
270
-60
-60
-60
-60
-60
-60
-60
25m
43m
25m
27m
75m
incl.
incl.
incl.
15m
45m
3
30
14
8
0
0
20
45
5
39
6
33
16
12
72
15
41
72
8
43
3
3
2
4
72
15
21
27
3
4
490
357
690
370
324
341
374
378
672
380
Eastern
NDC166
NDC167
NDC168
NDC169
NDC170
NDC171
NDC172
NDC174
Lode
3425520
6425600
6425700
6425700
6425840
6425840
6426160
6426160
System
385040
385110
385180
385015
385180
385210
385200
385280
270
270
270
270
270
270
270
270
-60
-60
-60
-60
-60
-60
-60
-60
38m
and
30m
45m
51m
35m
50m
50m
50m
2
34
18
29
9
23
28
28
16
5
36
23
33
11
28
32
30
24
3
2
5
4
2
5
4
2
8
372
267
346
314
357
314
349
270
425